With changes as fundamental as this, going beyond discussing the proposals in principle to get insight into how they would actually work is important.

We’ve come away from the field testing with a much better idea of the challenges of implementing the proposed standard. We remain supportive of the proposals, but the feedback confirmed that the draft standards need some refinement.

Many of the views expressed were quite strong – particularly around Key Audit Matters – and concern about the proposed standard was intense enough and consistent enough to be a significant finding.

We’ve shared these concerns with the IAASB so that they can reflect on them as they finalise the standard and decide what’s needed to support implementation.

The video explains:

The results of the field-testing

What audit teams found when they implemented the proposed standard

What management and audit committees think about the proposals

Which parts of the proposals present an opportunity to add significant value to the audit, and

Which parts of the proposals might have unintended consequences

Watch to find out more, or click here to read our response to the IAASB.